What is a common characteristic of a seller’s market?

In a seller’s market, increased demand for homes is a defining characteristic. This scenario typically arises when there are more buyers looking to purchase homes than there are available homes for sale. The imbalance between supply and demand leads to heightened competition among buyers, which can drive prices up and result in sellers being able to sell their properties more quickly and potentially above the asking price.

The increased demand can stem from various factors, such as a strong economy, low interest rates, or a growing population, all of which contribute to buyers' eagerness to secure properties. As a result, sellers have the advantage in negotiations, often receiving multiple offers on their homes.

The other options reflect conditions that are typically associated with a buyer's market, where there would be a surplus of inventory, lower competition among buyers, and decreased home values. Thus, option C accurately captures the essence of a seller's market by highlighting the crucial role of increased demand.